Despite the apparent contradictions, U.S. Trade Representative Kantor insists there are no major differences within the administration on trade.

"We don't want to be labeled," he says, "but, in a pragmatic way, we're all committed to expanding trade and opening markets."

Many aren't convinced. Presidents Reagan and Bush called themselves "free traders" and generally worked to build global commerce while still protecting special constituencies when it was politically expedient.

The Clinton administration professes the same goals, but it shuns ideological labels and sends mixed signals to allies and special interests. The strategy may work in the long run, but it has set America's trading partners on edge and emboldened protectionists.

It's not dead, contends Kantor; it's not even sick. Panetta was merely stating the obvious: The free trade pact, which President Bush negotiated with Mexico and Canada last year, would have a hard time being approved by Congress today. But the United States is negotiating supplemental agreements that should overcome worries about environmental and labor issues.

Negotiations on these side agreements began in mid-March, and Kantor says they're progressing on schedule. He hopes to have them completed this summer and the trade pact approved by Congress before the end of the year so it can go into effect Jan. 1.

But Kantor is walking a dangerous tightrope, trying to appease lawmakers and special interests by finding ways to promote pollution cleanup and worker safety without treading on the sovereignty of Mexico and Canada. So far he seems to be pulling it off.

Canada is rushing to ratify the treaty even before the side agreements are completed. Several U.S. environmental groups announced this week they'll endorse the treaty as long as there's a way to settle disputes over pollution through persuasion and arbitration.

The U.S. and Mexico already are moving toward open trade. Since 1986, exports to Mexico have nearly quadrupled to $40 billion a year, creating, according to one estimate, 350,000 U.S. jobs.

Over 15 years, the treaty will phase out tariffs. Most economists believe it will create modestly more new jobs in the U.S. than will be lost to Mexico. For Mexico, it will boost wages and productivity, creating new wealth and higher living standards.

NAFTA deserves to be passed even without the side agreements. It would be a serious mistake to let it die. The Bad Cop is sending the right message on North American free trade, and that's good.